Tinkler finances to be laid bare in court

Lawyers for the liquidators of one of
Nathan Tinkler
’s private companies plan to reveal his 2011 taxable income was just $9000 as they pursue him for failure to stump up $28.4 million for a share placement in
Blackwood Corp
.

Unless Mr Tinkler settles the dispute by Thursday, he will have to appear before the NSW Supreme Court to face questions about his personal finances that could damage his reputation.

On Tuesday a judge ruled that examinations by liquidators that could see his finances laid bare were not an abuse of court processes and ordered Mr Tinkler to pay costs.

Last week Mr Tinkler’s lawyers, DLA Piper, received an email – apparently by accident – from Clayton Utz, counsel for liquidator Ferrier Hodgson and Blackwood, setting out their legal strategy. In response, DLA Piper accused Clayton Utz of attempting to maximise the pressure on Mr Tinkler and maintain leverage against the Tinkler Group.

Mr Tinkler’s associates and fellow directors
Troy Palmer
,
Matthew Keen
and
Aimee Hyde
are also due to face examinations later this week.

Negotiations becoming desperate

Mr Tinkler’s Singapore-based lawyer suggested a deal last week under which he would make a takeover bid for Blackwood through another of his private companies. In return, the public examinations would be dismissed.

Sources close to Mr Tinkler said the offer was priced at 30¢ a share – the same share price Mr Tinkler’s private company, Mulsanne Resources, had promised when it struck a deal for a $28.4 million placement last year. Blackwood shares have since fallen to 10¢ a share. A full takeover offer at 30¢ a share would value the company at $57 million.

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Clayton Utz, on behalf of Blackwood, responded to Mr Tinkler’s offer with an alternative proposal.

Alec Leopold
, SC, for the examinees including Mr Tinkler pointed to an email exchange the day before examinations were due to start last Friday, in which Clayton Utz’s
Jennifer Ball
said “the [Blackwood] board" would stand down examinations if a $15 million cash guarantee or evidence that it could be provided was given.

An email, sent at 12.51pm last Friday, just an hour before examinations were due to commence, stated that Ms Ball “required to see evidence of transfers of funds before the deadline of 2pm today". But there was still no evidence by 2pm and Mr Tinkler’s lawyers claimed the examinations were an abuse of process.

Negotiations and emails from Mr Tinkler continued into Friday and over the weekend, becoming increasingly desperate.

The lawyer for the liquidator of Mulsanne and major creditor Blackwood, Ms Ball, was “wearing two hats," Mr Leopold said. “She has become the vehicle through which Blackwood has been able to manipulate the immediate and ongoing future of the examination proceedings and that has been for Blackwood’s own private commercial interests," Mr Leopold said. Judge
Paul Brereton
rejected Mr Tinkler’s claim the liquidators examinations were an abuse of process, saying: “In my view what occurred in the proceedings does not begin to approach an abuse of process."

“And that has occurred in a way which drifts way beyond the publicly recognisable and legitimate and proper purpose of the examinations."

Tinkler due before court, finances under scrutiny

Mr Tinkler must now appear in court on Thursday morning. He failed to appear last Friday and was threatened with arrest and contempt of court should he not appear this time.

One of his lawyers gave evidence that he thought the coalmining entrepreneur was not in Sydney on Friday, when he was summonsed to appear before the court, but was instead still in Singapore. A spokesman for Mr Tinkler said he was planning to turn up in court in Sydney on Thursday.

Mr Tinkler’s finances have been the subject of much market speculation. His private jet and helicopter were seized in December after his failure to make payments to GE Capital and have since been placed up for sale. The Australian Financial Review has previously reported he has up to $700 million in loans against his 19.4 per cent stake in
Whitehaven Coal
, now worth less than $500 million.

Some of Mr Tinkler’s creditors, including Noonday and Credit Suisse, have provided documents for the Blackwood matter.

Mr Tinkler is not known to have any plans to divest his stake in Whitehaven, but there has been market speculation this could occur.

Whitehaven shares closed down 14¢ at a fresh four-year low of $2.39 on Tuesday despite the federal government approving an expansion of its Tarrawonga mine in NSW subject to conditions.